The Major Labels Are Organized To Battle The Internet Fairness Act

Royalties = Money

The major record labels are forming their battle plans to defeat legislation to lower royalty rates for webcasters. CNET reports "representatives from the three largest music-recording companies, UNIVERSAL MUSIC GROUP, SONY MUSIC ENTERTAINMENT and WARNER MUSIC GROUP, plan to meet early next week with some of the industry's top artist managers in NEW YORK to discuss strategy about how to block passage of the Internet Radio Fairness Act."

The Internet Radio Fairness Act seeks to reduce the roralty rates Webcasters pay to play music.

Just over a week ago (NET NEWS 11/14), well over 100 groups, musicians and singers have publicly released an open letter opposing PANDORA’s effort to get The Internet Radio Fairness Act into law, which would cut artists’ pay when music is played over Internet radio. Among the artists to sign the open letter were COMMON, DEAD KENNEDYS, MISSY ELLIOT, VINCE GILL, DON HENLEY, BILLY JOEL, MAROON 5, MARTHA REEVES, DAVID SANBORN, MICHAEL W. SMITH and ROGER. While saying they were "big fans" of PANDORA and lauded the company’s commercial success, the artists asked why PANDORA was pushing Congress to lower its royalties. 

CNET notes, "Many in the music sector note that the labels gave PANDORA a break on the royalty rates five years ago and now, after PANDORA filed for a public offering and leaders have banked personal fortunes as a result, they're coming back for a double dip. Opponents of the bill argue that the industry is just now getting its footing in the digital era but can't afford to take any more financial hits, as evidenced by the shrinking number of record companies. A decade ago, there were five major labels. Now, there are three."

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